HC Deb 04 March 1987 vol 111 cc618-9W
Sir Peter Hordern

asked the Secretary of State for Social Services if he will publish a table showing the proportion of average earnings taken up by housing benefit, as rent and rate rebates, in 1970, 1980 and the latest available date.

Mr. Lyell

I understand that my hon. Friend's intention is to compare the growth in expenditure on rent and rate rebates over time with movements in average earnings. National rebate schemes did not come into effect until the early 1970s. The figures in table I show expenditure on the rent rebate and allowances and rate rebate schemes administered by the Department of the Environment but not the more substantial sums, which are difficult to isolate, which were at the time included in weekly supplementary benefit towards rent and rates.

The housing benefit scheme, which was fully implemented in April 1983, brought together the assistance with rent and rates previously provided through supplementary benefits and through the rent rebate and allowances and rate rebate schemes. Table II shows expenditure in the first full year of the housing benefit scheme and the latest estimates for the current year. To compare expenditure incurred under the different schemes would, however, be misleading as the apparent large growth in expenditure in 1983–84 arose primarily from the reclassification of what was formerly supplementary benefit expenditure.

Expenditure on rent and rate rebate and allowance schemes compared with average earnings
Table I Expenditure £ million Percentage change over initial year Average1 earnings in April of each year £ Percentage movement in average earnings over initial year
1976–77 336 71
1980–81 632 88 122 73
Expenditure on housing benefit compared with average earnings
Table II
1983–84 3,735 165
1986–872 5,099 37 210 27
Notes:
1 Average earnings of all male workers.
2 Estimated outturn.